Correlation Between AMREP and CleanCore Solutions

Can any of the company-specific risk be diversified away by investing in both AMREP and CleanCore Solutions at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AMREP and CleanCore Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMREP and CleanCore Solutions, you can compare the effects of market volatilities on AMREP and CleanCore Solutions and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AMREP with a short position of CleanCore Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and CleanCore Solutions.

Diversification Opportunities for AMREP and CleanCore Solutions

-0.19

Correlation Coefficient

AMREP  CleanCore Solutions

Good diversification

The 3 months correlation between AMREP and CleanCore is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and CleanCore Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanCore Solutions and AMREP is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AMREP are associated (or correlated) with CleanCore Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanCore Solutions has no effect on the direction of AMREP i.e., AMREP and CleanCore Solutions go up and down completely randomly.

Pair Corralation between AMREP and CleanCore Solutions

Considering the 90-day investment horizon AMREP is expected to generate 119.07 times less return on investment than CleanCore Solutions. But when comparing it to its historical volatility, AMREP is 3.25 times less risky than CleanCore Solutions. It trades about 0.01 of its potential returns per unit of risk. CleanCore Solutions is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  140.00  in CleanCore Solutions on April 30, 2025 and sell it today you would earn a total of  248.00  from holding CleanCore Solutions or generate 177.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AMREP  vs.  CleanCore Solutions

AMREP

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMREP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, AMREP is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

CleanCore Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CleanCore Solutions are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CleanCore Solutions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMREP and CleanCore Solutions

The main advantage of trading using opposite AMREP and CleanCore Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, CleanCore Solutions can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CleanCore Solutions will offset losses from the drop in CleanCore Solutions' long position.

The idea behind AMREP and CleanCore Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.